Private Companies in Deep Debt

Following is a rundown of Florida private companies on
Moody’s debt-troubled list for the first quarter. Included is information
from the companies’ own reports on some of the circumstances
that have contributed to their difficulties.

CCS Medical Holdings (unranked)

Clearwater — Fifteen-year-old CCS Medical distributes
medical products and provides services to people with chronic
health conditions, including diabetes. Owned since 2005 by
Warburg Pincus private equity firm, in 2007 CCS Medical filed
a registration statement for an initial public offering. The company withdrew the offering last June citing market conditions. In its IPO registration, the company said that as of December 2006 it had almost $500 million in long-term debt.

Claire’s Stores(No. 17)

Pembroke Pines — Trendy teens turn to this shopping mall retail chain for the latest inexpensive jewelry and fashion accessories. But the recession has taken a toll on sales, which fell 6.5% to $1.4 billion in 2008. Same-store sales dropped 6.9% in 2008 and 7.2% in the fourth quarter, which ended Jan. 31. Two years ago, an affiliate of leveraged buyout firm Apollo Management took the company private. As of the end of January, Claire’s long-term debt totaled $2.4 billion.

Anthony Shalom

Michael Shalom

Intcomex (No. 22)

Miami — The wholesaler of computer information products sells to distributors and retailers in Latin America and the Caribbean. In its 2008 annual report, the company — owned by Citigroup Venture Capital International and company founders Anthony and Michael Shalom — said it expected to have enough available capital to meet its needs for the next 12 months. But it added that Intcomex’s substantial debt, totaling $136.9 million, could limit the cash flow available for operations. For 2008, revenue was $1.07 billion, up from $1.04 billion in 2007. The company had a 2008 net loss of $35 million compared to a net profit of $12.6 million a year earlier.

ION Media Networks(unranked)

West Palm Beach — Once known as Paxson Communications, the company owns 60 broadcast stations as well as the independent television network Ion Television. Ion voluntarily delisted from the American Stock Exchange and went private in early 2008.

(It was among the top 100 public companies in 2006 before it went private.) The company’s broadcast cash flow declined 72% for the first nine months of 2008, down to $19.8 million from $69.7 million for the first nine months of 2007. In April, ION reported it was in talks with lenders to convert its $2.7 billion in debt to equity.